What are two product system differences between the push and pull processes? Choose 2 answers

The fundamental difference lies in how production is initiated. A "push" system schedules production in anticipation of future demand, based on forecasts. This approach moves products forward through the system, often leading to higher inventory levels. In contrast, a "pull" system initiates production only in response to actual downstream demand (a "pull" signal). This reactive approach is designed to minimize inventory at all stages of the supply chain, thereby eliminating the waste associated with excessive stock.

B. Overproduction in a push system increases costs related to holding inventory, storage, and potential obsolescence; it does not lower costs.

C. Pull systems are concerned with managing the production flow of existing products, not the process of developing additional or new products.

E. The choice between push and pull systems is an operational strategy and does not inherently enhance or detract from employee relations.

F. Quality control is a distinct function present in both systems; a pull system may expose quality issues faster but does not initiate the quality process itself.

1. Heizer, J., Render, B., & Munson, C. (2020). Operations Management: Sustainability and Supply Chain Management (13th ed.). Pearson. Chapter 16 defines a pull system as one that "pulls a unit to where it is needed just as it is needed," contrasting it with a push system that "pushes" material based on schedules (p. 660). It explicitly links pull systems to inventory reduction.

2. Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies (3rd ed.). McGraw-Hill. Chapter 6 contrasts the two systems, stating, "In a push-based supply chain, production decisions are based on long-term forecasts," while "in a pull-based supply chain, production is demand-driven" and leads to "reduced lead times, and reduced inventory levels" (pp. 130-131).